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How Budget 2018 impacts companies under insolvency and bankruptcy

Since the government has identified the success of IBC as a key determinant of economic growth, one would hope that it would address concerns in the modified Bill

bankruptcy code, Insolvency and Bankruptcy Code, IBC, bankruptcy
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bankruptcy

Himanshu Sinha
The Budget 2018 has proposed two changes in the income tax law that was widely expected to be brought in to provide relief to the already beleaguered companies fighting to survive the insolvency and bankruptcy process under the Insolvency and Bankruptcy Code, 2016 (IBC). While these two changes provide much-needed relief and clarity in respect of MAT (alternative minimum tax) burden of these companies and their ability to carry forward operating losses, few other issues plaguing the distressed companies remain unaddressed.

Carry forward of losses:

Currently, Section 79 of the Income-tax Act, 1961 (Act) provides that losses cannot be carried

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